personal finance unit 2 test
information about a personal bankruptcy may be reported in your credit file for
10 years
which of the following is not associated with credit cards?
a debit to your checking account
which of the following is an example of open-end credit?
a department store credit card
which of the following is an example of closed end credit
a mortgage loan
a drawback of a regular savings account is
a relatively low rate of return
the APR is the percentage cost of credit on a(n) basis
annual
Gossi wants retail purchases to be deducted directly from his checking account, what ones should he choose
both debit card and written check
Sally has a major problem w/ a product and thinks that many others have had the same problem. what is the best way to resolve
class action lawsuit
Cathy needs a full range of financial services, including checking, savings, and lending in person, where should she go?
commercial bank
earning interest on previously earned interest is called
compounding
when misused, credit can result in
default, bankruptcy, and loss of creditworthiness
A fixed operating cost for a vehicle is
depreciation
FICO scores generally range from
350 to 850
ATM
Automatic Teller Machine
personal bankruptcy can be filed under which sections of the US bankruptcy code?
Ch 7 and 13
What are the 5 C's of credit?
Character, Capacity, Capital, Collateral, Conditions
what are the three major credit bureaus?
Experian, Equifax, TransUnion
a realtor's service include all of these except:
home appraisal
the periodic charge for the use of credit is called
interest
the dealer's cost is also known as the
invoice price
refers to the opportunity to withdraw your $ on short notice without incurring a loss in value.
liquidity
a credit card is a type of
loan/borrowing
a variable operating cost for a vehicle is
maintenance and repairs
A process used to settle grievances in a nonbinding process called a(n)
mediation
disadvantage of renting
no tax benefits, restrictions regarding pets, limitations regarding remodeling
which of the following is often considered to offer the least expensive loans(loans with low interest)
parents or family members
during the closing for a home purchase, you will normally do which of the following?
pay all the closing costs, settle last-minute details, and sign documents
Which of the following expenses is not usually incurred by a tenant
property taxes
What should a home buyer consider when evaluating a house?
property values of the community, school system, location of businesses and future construction projects
Earnings on savings can be measured by the
rate of return
Common payment choices for everyday activities include all of the following except
short term loan
if you have a problem whose remedy will be between $1,500 and 43,000, the appropriate tool to use would be a
small claims court
which of the following is correct about inflation
to increase buying power, need to earn a rate> than the rate of inflation
A written guarantee from the manufacturer, specifies conditions which the product can be returned, replaced or repaired
warranty
what are the disadvantages of a car lease
◦No ownership interest ◦Must meet requirements ◦May have additional costs for extra mileage, turning the car in early, or for certain repairs
what are the advantages of a car lease
◦Small cash outflow ◦Lower monthly payments than buying ◦Lease provides detailed records - helps if you use your car for business purposes ◦Able to obtain a more expensive car more often